The Government has confirmed that beginning 4 July 2022, an employer must be accredited to employ a migrant worker on an employer-supported work visa.

Key Dates for Employers:

• 09 May 2022: Applications for Accreditation and Job Check open

• 03 July 2022: Last day for Essential Skills Work Visa

• 04 July 2022: Employer Accreditation and AEWV are mandatory

How Does Mandatory Employer Accreditation Impact You?

Currently, the only employer-supported work visa available is the Essential Skills Work Visa (ESWV). You do not need to be accredited to support employees on an ESWV.

However, ESVW category closes to new applications on 3rd July 2022. From 4th July 2022, the only option available to employers is the Accredited Employer Work Visa (AEWV). In order to support an employee on or after 4 July 2022, you must have received your accreditation from Immigration New Zealand.

Update for Accredited Employers

Individual Talent (Accredited Employer) work visa holders are now able to move to a previously accredited employer, so long as the new employer’s accreditation expired after 31 March 2021. 

For example, if your accreditation expired on 1 July 2021, you could leverage your previous accreditation to attract a Talent Visa holder. This migrant worker with a Talent (Accredited Employer) work visa would be able to come work for you, and their pathway to residence would still be available.

If your accreditation has already lapsed or whether you have chosen to retain it, you will need to become accredited under this new accreditation system.

3 Steps to Hiring a Migrant Worker from 4 July 2022

To hire a migrant worker on the Accredited Employer Work Visa, which will be the only work visa available from 4 July 2022, you will have to complete these 3 steps in the order specified below:

Step 1. Get accredited. In order to get accredited:

• There will be two different levels of accreditation. (An employer's accreditation level will depend on how many AEWV holders they want to employ).

• You must be a genuine employer who is compliant with NZ’s employment and immigration laws.

• You are expected to prioritise the training, upskilling and hiring of NZ workers - only employing migrants where there are genuine skill shortages.

• You are expected to pay all recruitment costs in and outside of NZ. Your accreditation relies on this.

• INZ may seek specific commitments from businesses to complete during the accreditation period.

2. Pass the job check

You will need to apply for a job check for each role you want to hire a migrant worker for. 

You can only hire a migrant worker on an AEWV for a job if it has passed the job check. The employer will have to pay for this. 

Among other requirements, you may also need to complete a labour market test (LMT). This is to prove there are no NZ citizens or residents available for the position. 

3. Migrant worker’s visa (AEWV) application - Migrant check

After the first 2 steps are passed, you can invite the migrant worker to apply for a visa to work in that specific job. 

Only once the worker’s visa is approved are you able to hire them.

Summary:

These new changes impact both individual migrant workers, as well as every single employer in New Zealand, who relies on migrant workers. 

The Process

• There will be two different levels of accreditation. An employer's level will depend on how many Accredited Employer Work Visa (AEWV) holders they want to employ.

• A migrant can only apply for the work visa once the accreditation stage is ticked off and the job check stage is approved.

• Accreditation is initially granted for 12 months. Then, unless the employer is a franchisee or part of a triangular employment agreement, the accreditation can be renewed every two years. 

Employers

• The accreditation must be held by the direct employer named on the migrant worker’s employment agreement.

• The business must be a genuine employer who is compliant with NZ's employment and immigration laws.

• Businesses would be expected to prioritise the training, upskilling and hiring of NZ workers – only employing migrants where there are genuine skill shortages.

• Employers are expected to pay all recruitment costs in and outside of NZ. If INZ finds out otherwise, they will cancel the accreditation.

• INZ may seek specific commitments from businesses to complete during the accreditation period.

Labour Market Test (LMT)

• The strictness of the labour market test (LMT) depends on the location (region) of the job.

• It will be stricter for regions with ‘higher-supply’ of New Zealanders – these regions (as well as ‘lower-supply’ regions) will be identified by Immigration New Zealand (INZ).

• Jobs paid below median wage currently $27 per hour) must pass the full LMT, including advertising and listing the job with Work & Income NZ (WINZ).

• Showing pay rate and hours of work in job adverts are required.

• Advertising must show the minimum qualifications, work experience, skills and/or other specific requirements of the job.

• The WINZ-issued Skill Match Report (SMR) process will be tightened, including how actively an employer engages with WINZ referrals.

• The LMT will fail if the SMR shows the employer has actively disengaged, despite what the rest of the SMR says.

Migrant Workers

• Stand down periods - currently delayed till 1 July 2022 - will be reintroduced.

• INZ will check to see if migrant worker meets requirements of AEWV, including skills and experience for the job.

o A new pathway to residence will be introduced for migrants who have held an AEWV for two years and are paid at least 200 percent of the median wage 

o (currently $54/hour or $112,320 pa for a 40 hour week).

• Character, health and bona fide requirements will remain as they are. 

If you require additional support with your immigration requirements please contact Steve and his team via the details below.

Steve Baker DDI 03 353 0680 M 027 212 5483 E steve.baker@enterprise.co.nz